AAK (AAK) Q4 2025 earnings summary

Executive summary

• Operating profit grew 9% year-over-year at constant exchange rates, excluding the Hillside divestment and restructuring costs, despite a challenging volume environment and pressured consumer demand, especially in chocolate markets.

• Q4 operating profit rose 7% year-on-year at constant FX and excluding one-offs, but declined 2% including currency effects; volumes fell 2-3% year-on-year, excluding Hillside.

• Profitability improved, with operating profit per kilo at SEK 2.45, up 5% year-on-year and 9% at fixed FX.

• Board proposes an ordinary dividend of SEK 5.50 per share (+10% YoY), an extraordinary dividend of SEK 3.85 per share, and a SEK 1 billion/year share buyback program for three years starting 2026.

• ROCE stood at 20.9%, excluding one-time restructuring costs.

Financial highlights

• Q4 operating profit was SEK 1,242 million, down 2% year-over-year, but flat excluding Hillside and currency effects.

• Full-year operating profit was SEK 4,675 million, down 5% year-over-year; excluding items affecting comparability and Hillside, it rose 2%.

• Q4 operating cash flow was SEK 288 million; full-year operating cash flow reached SEK 862 million.

• Free cash flow for Q4 was -SEK 47 million, impacted by seasonal sourcing and higher raw material costs.

• Net debt/EBITDA stood at 0.60, reflecting a strong balance sheet.

Outlook and guidance

• Management remains prudently optimistic about long-term prospects, targeting profitability above SEK 3 per kilo and volume growth outpacing the market by 2030.

• CapEx guidance for 2026 is SEK 1.5 billion, up from SEK 1.3 billion in 2025.

• Fit-to-Win cost optimization program is ahead of schedule, with SEK 150 million in savings already realized and SEK 300 million targeted by mid-2026.

• Focus remains on disciplined execution, portfolio strengthening, and sustainable growth aligned with the 2030 Aspiration.